Windermere XIV Noteholder Meeting - Hatfield Philips

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HATFIELD PHILIPS INTERNATIONAL Strategy SISU Loan Stats UPB at Origination € 389,729,565 Current UPB € 110,391,053 Whole Loan initial LTV 82.47% Whole Loan current LTV 74.53% Maturity Date 15 April 2013 Asset Stats Lettable area 221,569 sqm No. of assets 137 Asset type Retail (predominantly) Valuation/Date € 148,114,947/ Apr 2012 Location Finland (multiple) NRI € 16,489,056 (annum) ERV N/A Vacancy 32.72% WALL N/A • An updated valuation has been instructed by HPI • If all covenants are met at loan maturity, there will be an extension of one year • If there is a covenant breach, the loan will go into default and transfer to Special Servicing • HPI will continue to engage with the Sponsor and monitor the consensual disposition strategy / business plan assuming the Borrower meets its obligations under the loan covenants • Through the initial extension period, the Borrower has successfully disposed properties at their business plan values (on average) demonstrating an ability to add value to the workout process • The current ICR is 3.01x, all excess cash after debt service and asset management fees is reserved for capex improvements • To date, the Sponsor has sold in excess of 400 properties Modifications • Loan is performing • Loan matures 15 April 2013 with embedded extension options of 1 + 1 years if the Borrower meets the following targets: (i) LTV must be: below 80% from April ‘12 to April ‘14 IPD, and 70% as at April ‘14 to April ‘15 IPD (ii) Maximum Outstanding Balance must be below: €103m at April ‘13 IPD, and €65m at April ‘14 IPD (iii) No other outstanding EoD has occurred Performance/Credit Events HPI │ WINDERMERE <strong>XIV</strong> LOAN REVIEWS 12
HATFIELD PHILIPS INTERNATIONAL Loan Stats BAYWATCH UPB at Origination € 53,897,000 Current UPB € 40,763,673 Whole Loan initial LTV 77% Whole Loan current LTV 92.23% Initial Maturity Date 15 April 2013 Asset Stats Lettable area 58,597 sqm Asset Count 7 Asset Type Mixed Use Valuation/Date € 44,200,000/Mar 2012 Location Germany NRI € 4,609,121 ERV € 4,193,650 Vacancy 4% WALL 3.22 years Strategy Modifications • In April 2012 the loan was restructured and extended to 15 April 2013 • Extension terms: • €1.2M equity injection (free cash flow from prematurity asset sale) • Full cash-sweep • Hard quarterly deleveraging hurdles (maximum loan balance covenant) • Establishment of new Servicer-controlled Capex Reserve account • Other credit considerations: • Lengthy and costly German enforcement process • Asset Manager’s portfolio sales track record • Sponsor incented by potential equity recovery Performance/Credit Events • Borrower has tripped the October 2012 target loan balance covenant; the loan was subsequently transferred to Special Servicing • In November, Servicer and Junior Lender consented to an asset disposal; €8.3M net sale proceeds to be collected for the January 2013 IPD • Approximately €2.7M in excess cash flow swept to date and applied to hyper-amortize the loan • Maximising recovery from the sale of the remaining properties • A revised consensual sales strategy is under consideration to lever off the on-going marketing and disposition process for several of the portfolio properties • An enforcement strategy through Borrower insolvency has been prepared and can be implemented at any time HPI │ WINDERMERE <strong>XIV</strong> LOAN REVIEWS 13
Page 1 and 2: Hatfield Philips International
Page 3 and 4: HATFIELD PHILIPS INTERNATIONAL Hatf
Page 5 and 6: HATFIELD PHILIPS INTERNATIONAL HPI
Page 7 and 8: Windermere XIV Portfolio Overview
Page 9 and 10: Windermere XIV Loan Reviews
Page 11: HATFIELD PHILIPS INTERNATIONAL Loan
Page 15 and 16: HATFIELD PHILIPS INTERNATIONAL Stra
Page 17 and 18: Presentation Follow Up
Page 19: End of Presentation

Windermere XIV Noteholder Meeting - Hatfield Philips

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